If you already own and operate your own small business or online business then accepting Bitcoin payments as an additional way for your customers to pay can help you to reduce your overall business transaction costs as well as help you gain new customers from the growing Bitcoin economy. Not only can taking bitcoin offer your customers a more convenient form of payment, but it can also help small businesses attract new customers that prefer to make payments in bitcoin form.
It Is Free To Begin Receiving Bitcoin Payments
One of the best things about accepting bitcoin as a form of payment is that it is literally free for your business to start accepting these types of payments, except for the negligible transaction costs that go into larger transactions. Unlike signing up as a merchant in a traditional sense which can have initiation costs, it is free to create a bitcoin wallet in order to begin accepting payments in bitcoin.
You Will Have Lower Transaction Costs
While the typical transaction costs for credit cards and debit cards is 2-3%, the transaction costs for a bitcoin transaction are around 0.10% and can sometimes be free for smaller transactions. This can be an excellent advantage for small businesses that do not have a large profit margin, as the transaction costs that you incur from processing credit card transactions can have a larger impact on your bottom line profits.
Gain New Customers From Accepting Bitcoin
Since not all major businesses today accept bitcoin as a form of payment such as with cash or credit cards, by taking bitcoins you will be able to list your business in directories of stores that take bitcoins. Also the largest demographic of bitcoin users is young people, so by accepting the cryptocurrency bitcoin as a valid form of payment you will be able to attrct a younger audience of customers to your business.
This article will examine the topic of investing in Bitcoin and cover both sides of the argument about whether Bitcoin is a speculative bubble or whether it is a stable long term investment and store of value as many early Bitcoin investors have claimed. Many regular consumers are skeptical or confused about bitcoin and whether it is a currency or investment, and this article will explain some of those important points.
Why Bitcoin Is Not A Ponzi Scheme
If you are talking about investing in bitcoin on a buy and hold basis in order to gain more money in the future, there are some people that think it is a ponzi scheme of some kind, but this is just proof that they do not understand the fundamental architecture that makes bitcoin work. The technology behind bitcoin is called the blockchain, and this is the technology that allows bitcoin to be used as a global decentralized currency.
Why People Think Bitcoin Is A Bubble
Some people have compared bitcoin to the tulip mania bubble or the dot-com bubble, and this is because of the rapid price increases that the value of one bitcoin has received as well as the large amount of price volatility. The value of bitcoin is in the cryptography and technological breakthroughs that went into the blockchain technology in order to make it function as a decentralized system that can be used to transfer economic value.
What If Bitcoin Is Everything That It Promises?
Most bitcoin skeptics are not computer scientists or cryptography experts, and they do not understand that the backbone technology of bitcoin solves a mathematical paradox that scientists believed was impossible to solve. By creating a payment system that can be used safely on a global scale, bitcoin has the potential for massive growth over the next few years and it is likely that we will see more and more people becoming comfortable using bitcoin as a payment method.
If you have heard about Bitcoin and want to learn about buying digital Bitcoins the safe way while staying free of scams and making sure your investment is safe, the tips in this helpful Bitcoin guide will walk you through the steps necessary to buy your first Bitcoin. Owning and using bitcoins is a very straightforward process once you understand how the technology works and how to use it.
Setting Up Your First Digital Wallet
The first step for buying your first bitcoin is to set up a digital wallet, which can either be an online wallet or software-based wallet. If you plan on spending your bitcoins online and need access to them when you are away from your computer then starting an online wallet may be the best solution for you. There are also several types of bitcoin wallet client software that can be downloaded and used on your home computer, as well as mobile bitcoin wallets that can be used on either android or iphone smartphones.
Finding A Reputable Bitcoin Merchant
Once you have set up a digital wallet, now you need to fund your wallet by transferring dollars into bitcoins. If you are using an online wallet service then some of them also offer exchange services as well, but if you are using your own bitcoin wallet downloaded on your computer or smartphone then you will need to find a bitcoin exchange. You can find a reputable bitcoin exchange by reading reviews on the internet and sticking with established industry leaders.
Security Tips For Keeping Bitcoins Safe
Now that you have your own bitcoin wallet and it is funded, it is important that you keep your investment safe using some industry standard security tips. If you are using your own bitcoin wallet then it is important for you to use a very secure private key password to prevent your wallet from being hacked. If you are using an established online bitcoin wallet service provider then there is less security risk to worry about as long as you stick with a reputable company.
This informative guide is intended for those who are new to the digital cryptocurrency Bitcoin and are interested in discovering all the different ways that you can convert Bitcoins into dollars and learning as much about how to use Bitcoin as possible. Converting dollars into bitcoin and bitcoin into dollars is not a very difficult process and also should not be very expensive, and there are a few different ways to convert your currency any way you choose.
Selling Your Bitcoins On Ebay
This is a method that not all people have heard of or are recommending to bitcoin users right now, but it can be an excellent way to convert your bitcoins back into dollars by literally selling them on the marketplace. One important tip for selling your bitcoins on ebay is to only sell one whole bitcoin at a time or multiple bitcoins at a time, as you are more likely to find a buyer this way.
Making Use Of A Bitcoin Exchange
This is the most popular way to transfer money between bitcoins and dollars, and there are plenty of reliable bitcoin exchanges that can be used for this purpose. Some of the important things to consider when using a bitcoin exchange are reviews of the exchange that are posted on the internet, the amount that they will charge as a fee for converting money between bitcoin and dollars, and what other services they offer such as an online digital wallet service.
How To Make Sure The Transaction Is Safe
If you are going to use a bitcoin exchange then it is important that you are using a reputable company with a good reputation in the industry, which is why checking reviews about the company can be very important. You can make sure that your bitcoin transaction and exchange is safe by working with a company that is an industry leader with a good reputation as a bitcoin exchange.
One of the reasons that the new Bitcoin electronic currency is being taken seriously by so many people is that it has numerous functions and features that make it function well as money without the need for traditional financial institutions to facilitate and clear transactions, making new Bitcoin cryptocurrency an industry changing development in finance.
Bitcoin Is Based On Cryptography And Algorithms
Unlike traditional fiat currencies that are backed by a central government and central bank, bitcoin is not backed by a tangible centralized institution but instead is secured by a powerful encrytion and cryptography technology that allows two parties to exchange money securely without the need of a mediating third party. That means that bitcoin can function as currency and facilitate transactions in such a way that it works perfectly as money, and for this reason it has become more and more popular as a medium of exchange.
A Bitcoin Has No Physical Value Like Gold
Despite the fact that bitcoin is not a tangible asset such as a gold coin, many venture capitalists and entrepreneurs are taking bitcoin very seriously and see the value of one bitcoin exceeding the price of an ounce of gold eventually. For the types of Silicon Valley technology entrepreneurs that have been putting their money into bitcoin, they value the promise of this new emerging technology probably more than they value investing in gold.
Bitcoin Provides Ease Of Use During Transactions
Another reason that bitcoin works so well as currency is the ease of use with which transactions can be facilitated. In a brick and mortar store one of the easiest ways to make a purchase with bitcoin is with your smart phone by scanning the QR code of the business you are working with. If you are making an online purchase then the transaction method is even easier because all you need to know is the public address of the person or business that you would like to send money to.
Many people who are just getting started learning about Bitcoin have some concerns related to the safety of any money that they might choose to invest in the digital currency, and by following some of these tips and tricks from Bitcoin power users you can make sure that you are applying industry standard safety strategies while using your Bitcoin account.
The Possibility Of Bitcoin Scams
It is important to watch out for anything related to Bitcoin that does not seem legitimate or seems like it might be a scam. Not all companies and individuals dealing with Bitcoin operate in a legitimate manner, as was demonstrated by the takedown of the Silk Road drug dealing operation that exclusively accepted bitcoin for its anonymity.
Whether Or Not To Pay In Bitcoin
A good test that you can use to figure out whether a business is using bitcoin payments legitimately or not is to see whether it is their only accepted form of payment. If they accept all major credit cards as well as bitcoin then it is likely that they are simply giving their customers a more convenient way to pay. If it is a company that only accepts bitcoin as a form of payment then they might not be operating a legitimate business.
Keeping Your Bitcoin Account Safe
Protecting your digital wallet where you store your Bitcoins is very important and requires a bit of computer security knowledge in order to make sure that your Bitcoins are always safe and never compromised or stolen. It is important to keep your private key protected and to make sure that you always have a record for it and never lose your private key. A bitcoin wallet that has lost its private key cannot be accessed, so make sure you always have your public key and your private key for your bitcoin wallet protected.
The digital cryptocurrency Bitcoin has attracted a lot of attention lately due to its use for making anonymous payments, and this article is going to discuss why Bitcoin is not 100% anonymous and some important information concerning Bitcoin anonymity tips. All bitcoin transactions are ultimately stored in a comprehensive publicly available database, which means it is possible to see the balance and transactions of any bitcoin address.
Bitcoin Is Actually Pseudo-Anonymous
The reason bitcoin cannot be completely anonymous is because every single transaction is recorded in the public blockchain ledger that supports bitcoin. This information by itself is not able to identify any individuals by itself since it is simply the public keys of those who are transacting with bitcoin, but if any one of those bitcoin transactions can be tied to a specifically identifiable individual then it can be possible to discover the identities of other individuals they have transacted with.
Why Would You Want To Be Anonymous?
It is important to ask the question why a business or individual would want to be anonymous in the first place. If the only form of payment that is accepted is bitcoin or some other digital currency without offering the option of paying by credit card then this can be an indicator that the company you are dealing with may not be operating legitimately. Remember that regular credit card transactions are not anonymous, and technically neither are bitcoin transactions.
Making Transactions Using Bitcoin
If you are a regular person that is not involved in any type of illegal behavior that you might want to conceal by using bitcoin, and you are just using it either to make regular purchases or to buy and hold in order to invest in bitcoin, then you have nothing to worry about from the psuedo-anonymous nature of bitcoin. All bitcoin transactions are ultimately stored in the public blockchain ledger, so if you are making bitcoin transactions on a regular basis for regular everyday purchases then you have nothing to worry about.
There are many people who believe that any transaction conducted using Bitcoins can be completely 100% anonymous, but the truth is that this is just a myth from people who do not understand how Bitcoin works. It is actually impossible for there to be anonymous Bitcoin transactions for the simple reason that every single Bitcoin transaction that has ever occurred is stored in a publicly available file called the block chain which anyone can download on the internet.
What Bitcoin Information Is Publicly Logged?
The information that is stored about all Bitcoin transactions that have ever happened is actually only what appears to be random numbers and random Bitcoin addresses, but the critical point that makes using Bitcoin not nearly as anonymous as many people think is that if you can tie a single one of these transactions to an established individual or identity then you could potentially find out the identity of all other addresses that are tied to it. The conclusion here is that Bitcoin is not actually anonymous but is in fact semi-anonymous, and if any transactions have ever been flagged as potential illegal behavior such as money laundering then it can be possible to tie that activity to a specific individual.
How To Improve Your Bitcoin Security
There are several industry best practices regarding the Bitcoin digital currency that can be implemented in order to make transacting in Bitcoins as safe, secure, and possibly anonymous as possible. Remember that there is no identity information publicly available in the block chain, but figuring out one actual identity can open the door to figuring out multiple identities potentially including your own. One of the industry best practices that you can implement is to use a new Bitcoin address for every transaction in order to make it much harder to correlate a number sequence in the block chain with a real person.
Staying Off The Radar Of Bitcoin Hackers
One of the things that makes Bitcoins a computer hacker’s dream come true is that transactions cannot be reversed, however just because this is true does not necessarily mean that the hacker can get away without having their identity revealed. There are several horror stories on the internet of people have large amounts of Bitcoins stolen from their accounts, and so far it has proven to be difficult but not impossible to track down individual people who have used Bitcoins for illegal purposes. If you want to really succeed with Bitcoin then you should understand as much as possible about Bitcoin security and industry best practices, and these tips should help you understand more about safety and anonymity regarding this digital currency.
If you are an investor or early adopter of the Bitcoin digital currency then an important metric that you will want to monitor is the Bitcoin exchange rate as it relates to US dollars as denominated by the symbol BTC. It is realistic to say that Bitcoins are still in their early adopter phase of technology even though an increasing number of stores and ATMs accept the digital currency, and anyone who has some of their money denominated in Bitcoins should monitor the exchange rate on a regular basis to see what their investment constitutes in a dollar equivalent.
Trading The Bitcoin Exchange Rate
There are some advanced traders and investors who are participating in the Bitcoin digital marketplace that are not buying the digital currency to buy and hold it over a long period of time, but instead are trading the Bitcoin exchange rate up and down the same way that you would trade the price of a major currency pair. It is also important to understand the differences between denominating your money in Bitcoins and denominating it in a regular first world currency such as the dollar, pound, or euro.
There is a lot of safety and financial stability in the major world currencies that exists and will persist, yet there are a number of revolutionary benefits associated with Bitcoin that are seen as very promising even though it is still a bit risky. One of the major differences is that all Bitcoins exist in digital form as a piece of software code instead of being a physical asset that you can touch with your hands like cash or gold. This means that all of your Bitcoin holdings are contained in your digital wallet which is a software program that can run on your desktop computer, laptop, or mobile phone.
The Price Volatility Associated With Bitcoins
One of the characteristics about investing or trading in Bitcoins that many individuals see as a risky disadvantage is that the price of Bitcoins is extremely volatile and it has been known to move over $100 in just several days. This is not a positive feature if you are someone who is trying to passively invest in Bitcoins by buying and holding them in order to try and see your asset value increase over time. While Bitcoin is still in its experimental phases there are more and more people using the new digital currency every day, and by learning about how the Bitcoin exchange rate performs you can decide if you are ready to jump on the Bitcoin bandwagon.
The new Bitcoin digital cryptocurrency has been gaining in popularity with both early adopters of the payment technology as well as those merchants that are willing to accept Bitcoin as payment for goods and services. The growing acceptance and popularity of paying for goods and services in Bitcoin has led to the development of a number of correlated industries and companies such as Bitcoin exchange merchants that allow people to swap their own currency such as dollars, euros, or yen for Bitcoin.
There Is A Limited Supply Of Bitcoins
One of the benefits of denominating a portion of your money in Bitcoins is that the currency itself differs largely from other major world currencies because it is not susceptible to central bank inflationary pressure and quantitative easing due to the fact that there are a fixed number of bitcoins that can ever be created. This, however, would not decrease the ability to use bitcoins for transactions as the units of currency can be divided down by eight digits, or the hundred millionth decimal place.
Your Digital Wallet Fits In Your Pocket
Those merchants that are willing to accept Bitcoin as payment in person will usually be using the digital wallet software on their smart phone, and you can facilitate a Bitcoin transaction when the merchant creates an invoice with a QR code that the customer can scan with their phone to complete the transaction. Once the customer scans the generated code with their smart phone the transaction will update on the merchant’s phone and be complete in just a few seconds.
Reduced Transaction Fees For Merchants
One of the reasons many merchants and online business owners have decided to accept Bitcoin as an optional payment method is that it offers them reduced transaction fees as opposed to the costs associated with credit card processing. This will benefit the merchant who is able to keep a larger percentage of the transaction price without the need for higher credit card processing fees, and it can also protect the merchant from the risk of chargeback fraud where a credit card charge is reversed at a later date.
This type of purchase transaction may also benefit the consumer as the merchant will be able to offer products or services at a slightly reduced cost due to the money that is saved from lower transaction costs. Considering the option of owning Bitcoin in a digital wallet or accepting Bitcoin as payment with your small business can be a financially rewarding choice for individual investors.
For those who are still unfamiliar with the concept of Bitcoin, the concept behind having a digital currency wallet might be equally confusing. This article will help explain what a Bitcoin is, why it has become so popular so fast, and how to get the most out of using your Bitcoin digital wallet. Bitcoin itself is something called a “cryptocurrency,” which means that it is 100% digital and is protected and maintained by a very advanced set of military grade public key algorithms that require solving complex mathematical equations.
A Currency Powered By An Algorithm
The computer network that solves these equations is peer-to-peer in nature, meaning that it is a collection of interconnected computers from all over the world. There is a very large file that some digital wallets will require you to download called the block chain, which is the sum total of every Bitcoin transaction that has ever occurred. One of the implications of the block chain as part of the Bitcoin algorithm is that every single transaction is recorded permanently as a matter of public record, meaning that Bitcoin is not actually anonymous and can be used to identify the people behind certain transactions.
Purchasing And Paying In Bitcoins
If you want to own or purchase bitcoins then the first step that you need to take is download the free digital wallet software to either your computer or your smart phone. Many people choose to make use of the smart phone version of the digital wallet because it allows them to carry their bitcoins with them as well as make purchases in person by paying with bitcoins. The way that you can pay using bitcoins in person instead of just on the internet is that the merchant can use their smart phone to generate an invoice that has a QR code, which is a square shaped black and white box that you can capture with your smart phone to complete the transaction.
Protect And Secure Your Digital Wallet
Because the new Bitcoin cryptocurrency is completely digital, it is important to be extremely cautious when it comes to protecting your digital wallet to make sure that your money is not compromised in any way. It is very important to keep your private password safe so that you never forget it and so nobody else has access to it, and it is also a bad idea to ever post your Bitcoin address on the internet. By learning more about Bitcoin and how to use the digital wallet software you can decide whether you want to convert some of your money into Bitcoins in order to take advantage of the new decentralized cryptocurrency.
Many individual investors around the world are looking for a way to purchase a Bitcoin for the first time so that they can diversify into the new digital crypto-currency and begin issuing payments and receiving payments that are denominated in Bitcoins. Learning about the new Bitcoin currency from scratch can sometimes be confusing especially when you are learning about the risks associated with denominating your cash into Bitcoins, but nevertheless there are many people looking to buy their very first Bitcoin.
Finding A Reliable Bitcoin Exchange
The first step to buying your very first Bitcoin is registering at one of the major reputable Bitcoin exchanges that you allow you to trade your currency such as dollars, pounds, euros, or yen for Bitcoin. While there are currently over 20 exchanges that allow you to buy Bitcoins, some of the smaller exchanges have questionable reputations and it is a good idea for the novice investor to stick to the biggest and most reliable exchanges that have taken measures to prevent money laundering and illegal activity.
Comparing The Prices Of Bitcoins
No matter where you are buying your Bitcoins from, the prices can vary drastically because not all sellers will continually update their listing price based on the movement of the daily spot price. This means that it can be possible for you to be either over-charged or under-charged for the price that you are going to pay for buying Bitcoins if you do not take the time to compare the different prices that are being offered and seeing how they compare to the current spot price on the price chart. Another important factor to consider when you are comparing prices is the fees that are charged for different currencies and different payment methods, and try to find the seller who is offering the best price and also the lowest fee structure.
Transferring Bitcoins To A Different Account
This is another popular way that people are using to acquire their first Bitcoin, and this is the strategy that you can use where you buy a certain designated amount of Bitcoins from an established third-party seller such as Coinbase and then once you have completed your purchase you can transfer your Bitcoin money to your digital wallet or to the Bitcoin exchange of your choice. By taking the first step of learning about Bitcoins and buying your first Bitcoin you can join the growing community of early adopters that are making use of this powerful new digital currency.
One of the most important things to learn for anyone who is considering using the new digital currency Bitcoin is to learn about how to avoid Bitcoin scams and make sure that you are always getting what you pay for and never getting ripped off or having your money stolen. Years ago when credit cards were being accepted online as payment by merchants for the very first time, this was also the heyday of online credit card fraud because online purchasing with credit cards was such a new industry that it was impossible to adequately address all security concerns before they led to fraud.
The Same Problem Exists Today With Bitcoin
The types of scams that are being operated today using Bitcoin are eerily similar to the types of credit card scams that existed on the internet less than 20 years ago when people started making online purchases with credit cards for the very first time. Since it is the introduction of a new payment method that the market is just getting accustomed to but is not necessarily completely familiar with, it is always the computer hackers and scammers that line up first to try and sucker people out of their money who are either ignorant of cyber security or who make a critical mistake that can endanger their money online.
Many Bitcoins Operators Have Been Shut Down
There are a handful of Bitcoin exchanges today that are considered reputable and have a large number of positive reviews, but there are over a dozen Bitcoin exchanges that have been shut down and no longer exist because of their shady business practices and their reluctance to implement industry standard money laundering prevention practices. Certain Bitcoin exchanges were alleged to be scams from the very beginning that were basically designed to prey on naive investors who did not know enough to keep their funds safe, so if you are going to use a Bitcoin exchange today then make sure you take the time to check its reviews and establish that it is a legitimate business.
Bitcoin Digital Wallet Safety Tips
Securing your digital wallet where your Bitcoins are stored is of paramount importance when it comes to maintaining the integrity of your funds. If you ever reveal your Bitcoin address and you have not changed the setting on your digital wallet software to be encrypted with a private key then it can be possible for a scammer to try and steal money directly out of your account. By taking the time to educate yourself about the potential Bitcoin scams that are out there, you can make sure that you can steer clear of those of focus only on the legitimate uses of Bitcoin as a currency.
If you are realistically considering allocating some of your money into Bitcoins then it is very important for you to take the time to educate yourself about how Bitcoins work and how you can stay safe and protect the integrity of your investment by following a few industry standard safety tips for using Bitcoins. Online safety should be a critical concern for anyone who currently owns any amount of Bitcoin in a digital wallet since this currency is completely digital and has no tangible or numismatic value the way that a gold or silver coin would.
Protect Your Digital Wallet Private Key
One of the critical features of storing Bitcoins in a digital wallet is that the only way to transfer money out of the digital wallet is to enter the private key, and anyone who gains access to your private key can therefore move money out of your digital wallet. This also means that if you lose the private key to your digital wallet for some reason then you will be locked out and unable to access your finds. Therefore it is critically important that you protect your private key from other people and make sure that you never forget it.
Do Not Post Your Bitcoin Address Publicly
It is not good for your online safety to post your Bitcoin address anywhere public on the internet which is tied to the real digital wallet account where you keep any significant amount of Bitcoins. Once you have posted your Bitcoin address to a publicly accessible page on the internet then it can be possible to tie your real world identity to your Bitcoin transactions as well as making your digital wallet a target for hackers to try and crack your private key to access your funds.
Watch Out For Bitcoin Related Scams
Unfortunately today there are many Bitcoin related businesses and websites that are not necessarily legitimate or even legal, and these people do not have your best interest at heart and are really only trying to gain access to the funds in your digital wallet. One way to avoid falling for any Bitcoin related scams is to take the time to do due diligence and proper research before you invest any real money, and this can mean searching the internet for any legitimate reviews related to the website you are considering doing business with. By taking the time to educate yourself about the online safety tips for using Bitcoins and making sure you do not fall for any Bitcoin related scams, you can make sure that you are using this new digital currency with confidence and that your digital wallet is safe.
The concept of the Bitcoin digital wallet is essential for you to understand if you are going to consider denominating a part of your money in the new currency called Bitcoins. A digital wallet is a software program that will run on your computer or smart phone that will store your Bitcoins, and this is the means by which you can send or receive Bitcoins in order to make purchases or be a merchant. In this article we are going to look at what the digital wallet really is and how you can keep your Bitcoin investment safe.
Defining The Bitcoin Digital Wallet
It is important to remember that Bitcoins are not physical currency the way that dollars, pounds, and euros are, but instead they are based on a highly complex mathematical algorithm and they exist literally as pieces of code on digital devices. For this reason, you will require a type of software called a digital wallet in order to hold your Bitcoins and to send or receive them from other people. If you are storing Bitcoins then you should take care to protect your digital wallet with the same consideration that you would have for your physical wallet.
How To Keep Your Digital Wallet Safe
One of the potential risks associated with using Bitcoins is that it is possible to lose your digital wallet and your data if you have a hardware failure such as a hard drive crash, and it is also possible for hackers to steal your Bitcoins if your transactions are not confirmed in the block chain by the Bitcoin peer-to-peer computer network. An important tip for keeping your digital wallet safe is to never post your Bitcoin address on the internet, and you should also make sure that you are running your digital wallet on a computer that is free of spyware.
Keeping Bitcoins On Your Mobile Smart Phone
Since you need to have a computer of some kind in order to run the digital wallet software where your Bitcoins are contained, many Bitcoin users choose to run their digital wallet software on their mobile smart phone for ease of use and for making point-of-sale purchases. The digital wallet software designed for smart phones tends to have a simpler and easier to use design which has made it popular with Bitcoin early adopters, and it is also required if you ever want to go into a physical store that accepts Bitcoins in order to make a purchase. By educating yourself about how to use the digital wallet and how to keep your money safe, you can be sure that you get the most out of using Bitcoin as a digital currency.
Bitcoins are currently growing in popularity with the number of individual investors willing to denominate part of their money in this new digital currency, as well as a growing number of businesses that are willing to accept Bitcoin cash payments. This is a new type of digital money that is completely decentralized in nature and relies on a peer-to-peer network connected to the internet in order to function and process payments. Here are three of the most important reasons why you should consider using Bitcoins for payment.
Bitcoin Is The First Decentralized Currency
For most of modern history our money and currency has been controlled by a central bank and a network of smaller banks, and electronic payments having been facilitated using an electronic automated clearing house facility. But the Bitcoin network changes this drastically because transactions are processed on a peer-to-peer basis rather than having to be processed through a central electronic clearing house or other centralized financial institution. The fact that Bitcoin is decentralized means that it is not issued by any government as regular currencies would be, and therefore the value of Bitcoins is not tied to any type of geopolitical events while still being accepted as payment and a medium of exchange.
Bitcoin Acts As A Hedge Against Inflation
One of the reasons that this type of digital currency has been growing in popularity at such a rapid rate is that many people are increasingly becoming mindful of government policies designed to erode the value of traditional currencies over time and are looking for a financial hedge against this erosion of value. One of the reasons that money denominated in Bitcoins is largely immune from inflationary pressure is that there is a fixed money supply of 21 million Bitcoins that can never be exceeded, meaning that the owners of Bitcoin cannot simply print more money the way that central banks and governments can.
Transaction Fees Are Lower With Bitcoins
Because of the decentralized nature of the Bitcoin payment network and the block chain that makes Bitcoin financial transactions possible, there are little to no fees when it comes to transferring Bitcoins from your digital wallet as payment. This can save money for both the vendor or merchant and also for the individual who is using Bitcoin to make a purchase. By learning about the important benefits of using Bitcoin over any other regular currency, you can see if this type of digital currency is the right choice for you.
One of the growing financial trends for individuals is to denominate a small part of their money in the digital crypto-currency called Bitcoin, for a number of strategic benefits such as having a store of value and a medium of exchange that is not susceptible to inflationary measures imposed by central banks. The Bitcoin digital currency itself is highly decentralized because it relies on a peer-to-peer communications network called the Bitcoin network in order to process orders and verify purchases.
Bitcoin: A Decentralized Digital Currency
It is important to remember that money itself is nothing more than a medium of exchange, and for most of modern history this medium of exchange has been enforced and controlled by central banks, national banks, and automated clearing house institutions. Because of this fact, most currencies have been slowly inflated and devalued as the government and central bank add to the amount of currency in circulation, therefore decreasing the value of each individual currency unit.
The reason Bitcoin is different is that it is not offered to the market by any specific company or bank, but instead it is based on a public key encryption algorithm which has been released on an open source basis. Instead of the need for a regular bank or automated clearing house to process and verify transactions and purchases, all Bitcoin transactions are calculated using advanced mathematical equations across a global network of computers that are connected on a peer-to-peer basis. This means that the mechanism behind processing transactions is inherently decentralized and therefore it is difficult to control or regulate by governments, and also not susceptible to inflationary market pressures.
Is Bitcoin A Safe Investment For Individuals?
There are both positive and negative aspects of government regulation, with the positive aspect being that these regulations will tend to protect consumers from industry insiders and scammers, and the negative side being an increased amount of pressure and control from a centralized authority. As long as the individual investor is willing to take the time to educate themselves about what Bitcoins are and how to protect their digital wallet, many are choosing to allocate a small part of their money in the form of Bitcoins.
Another risk associated with Bitcoins is the high volatility in the exchange rate between US dollars and Bitcoins, but many people are prepared to tolerate this change in market price in order to have their money denominated in currency units that are not controlled by a centralized institution. Bitcoins are becoming more widely accepted and are entering into the early adoption phase for individuals and technology pioneers alike, and by doing proper research you can decide if owning Bitcoins is appropriate for your personal finances.
With the growing popularity of the Bitcoin crypto-currency which is based on advanced public key cryptography for its security, more people are turning to the Bitcoin as a way to diversify a portion of their portfolio into a form of money that is essentially unregulated and decentralized. This article will cover some of the most important positive and negative aspects of converting your money into Bitcoins so that there is no confusion and you can understand clearly whether the new Bitcoin digital currency is something you should consider.
The Risks Of Investing In Bitcoin
Let’s start by covering some of the potential negative consequences of investing in Bitcoin, since it has been launched as an experimental digital currency based on advanced cryptography and peer-to-peer computing. A Bitcoin does not have any physical numismatic value the way that a gold coin or silver coin does, and it actually exists as a piece of software code that needs to be stored in a digital wallet. You can set up digital wallet software for free that will run on your computer or smart phone.
The digital wallet software that is used for storing and transferring Bitcoins is based on using both a public security key and a private security key. The public key is your Bitcoin address that you send to another person if you want to receive Bitcoins, and the private key is the one that you need to type in if you want to transfer Bitcoins out of your digital wallet. Not only is it possible for your digital wallet to get hacked if someone gains access to your private security passcode, but if you lose your passcode then there is no way for you to recover the lost Bitcoins.
The Benefits Of Investing In Bitcoin
Now that you know the potential dangers and pitfalls of Bitcoin, let’s look at some of the positive aspects that have led to its massive growth in popularity as a medium of exchange. Bitcoin transactions do not require a bank or automated clearing house the way that dollar transactions do, and therefore the exchange process is more anonymous and cannot be frozen by any financial institution. Because of this decentralized nature of Bitcoin transactions relying on a large global peer-to-peer computers, money can be transferred from anywhere in the world to anywhere else in a matter of minutes.
Another key benefit of Bitcoins is that there is a fixed amount in existence and therefore it is not subject to the inflationary pressures of a central bank that continues to print money and erode the value of its currency. This is seen as a very positive benefit by many investors because it offers a solid protection against inflation over time. By learning about the different aspects involved with investing in Bitcoins, you can decide if it is appropriate for you to diversify part of your money into Bitcoins.
If you are an online merchant or small business owner who is interested in accepting Bitcoin currency as payment for your goods or services, this guide will show you how you can begin to accept Bitcoin payments without any upfront costs. It is assumed that any small business owner who uses the information in this guide is simply looking for a way to accept Bitcoin as another legal way to pay and plans on paying taxes on any Bitcoin income that is generated.
Online Business Or Brick And Mortar?
Whether you operate your business completely online or whether you operate a regular bricks and mortar store, it can be possible for you to begin accepting Bitcoins as payment without any upfront costs and with reduced merchant fees compared with credit cards. It is easier to accept Bitcoins as payment if you are operating a website or online store, and receiving Bitcoins is free for merchants. There will usually be a small fee when you decide to transfer the money you have collected as Bitcoins back into dollars that can be transferred to a regular bank account.
Accepting Bitcoins as payment at a brick and mortar store is just as easy as accepting credit card or cash payments thanks to a number of Bitcoin merchant services available to small business owners. Many people who are willing to pay using Bitcoins in person in a physical store are going to want to do it using the digital wallet software that they have loaded on their phones, and so the best way to accept these types of payments is to create an invoice on your smart phone that has a QR code which the customer can scan to issue a payment.
How To Avoid Bitcoin Fraud
It is very important for any business owners to educate themselves about the potential for Bitcoin financial fraud before they decide to accept it as a legal means of payment for goods and services. Unlike a credit card transaction, there is no such thing as a chargeback when you are using Bitcoins and therefore that means that every transaction is permanent once it has been added to the block chain.
There is a type of Bitcoin fraud that merchants can fall victim to called double spending fraud, and this is where the Bitcoins never actually show up in the merchant’s account, but this can be avoided by waiting at least ten minutes until the transaction is added to the block chain. By adding Bitcoin as a payment method and taking steps to avoid fraud you can give your customers another way to pay and reduce your overall transaction costs.
For merchants or small business owners who are interested in accepting Bitcoins as a valid form of payment, it can be extremely affordable and even free for you to begin accepting Bitcoins as well as reducing your overall transaction costs compared with credit cards. Once you understand how the Bitcoin computer system works with its military-grade cryptography and peer-to-peer computer network that is used for verifying purchases, you should feel comfortable accepting this digital currency as a valid form of payment in order to make purchasing a more convenient experience for your customers.
Accepting Bitcoins With Your Website
Setting up an online business to accept Bitcoins as a valid form of payment is the easiest method for small business owners, and it can also be free to get started. You can either choose to use one of several reputable Bitcoin merchant services that are available which will give you a convenient button that you can add to your checkout page, or you can get in touch with your customers by email or another communication method which you can use to send them your Bitcoin address in order to receive payment. Both of these methods can allow you to begin accepting Bitcoins as a valid form of payment at no cost, though converting Bitcoins to dollars may have a small transaction cost that is still lower than the cost of using a credit card.
Accepting Bitcoins At Your Physical Store
If you operate a small business that is not based on the internet then it can still be a very cost effective solution for you to begin accepting Bitcoins from your customers as this can give you lower transaction fees than those associated with credit cards and debit cards, as well as reducing the risk of chargeback fraud associated with credit cards. One of the easiest ways to accept Bitcoins in person is to take advantage of digital wallets for smart phones and use your phone to generate an invoice with a digital QR code that the customer can scan in order to conduct the transaction.
One of the most popular platforms that can be used by anyone to accept Bitcoin transactions is called Bitpay, which offers smart phone software that allows you to generate a code that your customers can scan. The merchant’s smart phone should update within a few seconds and the whole transaction can be processed in less than 30 seconds with the reduced transaction costs associated with Bitcoins. By learning about how to accept the Bitcoin digital currency as payment for the products and services offered by your small business, you can start having lower transaction costs by taking advantage of this new digital currency that is growing in popularity.